Morankopf said: 'We hope to complete the transaction.' According to the agreement, if the approval of the Ministry of Commerce of China, Qualcomm can not complete the transaction, it is necessary to pay NXP Semiconductors a cancellation fee of 2 billion US dollars.
In October 2016, Qualcomm announced that it would acquire NXP Semiconductors for approximately US$38 billion, or approximately US$110 per share. Later, with the increase in the share price of NXP Semiconductors, the company's shareholders believed that Qualcomm's offer was too low. In February this year, Qualcomm again Raise the offer to $127.50 per share, or about $44 billion.
To complete the transaction, Qualcomm needs to be approved by nine national regulatory authorities. So far, Qualcomm has obtained approval from eight of them, only to be approved by the Chinese Ministry of Commerce. In order to wait for the review of the Ministry of Commerce of China, Qualcomm has extended the validity of this transaction dozens of times.
But Qualcomm has said that if it is not approved by the Chinese Ministry of Commerce before July 25, it will abandon the deal. Of course, Qualcomm also has a backup plan, which is to boost the stock price by repurchasing the company's stock.
Moronkopf said that if the acquisition of NXP Semiconductors failed, Qualcomm plans to buy back $20 billion to $30 billion in stock to boost the company's stock price.